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Bob Rewey

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The U.S. economy and consumer confidence remain strong, and demand for new cars and trucks continues at a healthy rate. These conditions and the success of our new products are driving the increase in our third quarter production plan.

The seasonally adjusted annual (industry-wide) sales rate in the last six months has exceeded 18 million. Going forward, we anticipate that consumer demand will moderate in response to higher interest rates. Still, consumer confidence remains high and that bodes well for healthy auto sales.

The traffic lights are green on Main Street, U.S.A.. Confident consumers, rising incomes, and innovative products continue to drive strong auto sales.

Despite difficult weather conditions up and down the East Coast, Ford and industry sales remained strong in January. With consumer confidence at all-time highs, and a record-setting economic expansion, we believe 2000 is shaping up to be another very good year.

August was another sensational month for Ford and the industry.

Our inventories are right where we want them to be heading into the second half of the year.

As expected, February sales fell short of last year's record-setting performance. Still, we remain optimistic about the prospects for a 'soft landing' and healthy auto sales.

October was the seventh month in a row of higher Ford sales to individual retail customers. This October, over 50 percent of our retail car sales were 1999 models. That is much higher than last October's mix of new models, which was 34 percent.

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